The following information pertains to Crabapple Corp.and its various divisions for the year ended December 31, 2017: According to IFRS, Crabapple has a reportable segment if that segment's revenue equals or exceeds

Question

The following information pertains to Crabapple Corp.and its various divisions for the year ended December 31, 2017:  According to IFRS, Crabapple has a reportable segment if that segment's revenue equals or exceeds

Quizplus · Accepted Answer

According to IFRS, a reportable segment must meet one of the following criteria:
- Its revenue from external customers is 10% or more of the combined revenue of all segments.
- The absolute amount of its revenue from external customers is $10 million or more.
- Its profit or loss is 10% or more of the greater, in absolute amount, of the combined profit of all segments that did not report a loss or the combined loss of all segments that reported a loss.
Based on the information provided, Crabapple Corp. has total revenue of $780,000. Thus, a reportable segment must have revenue equal to or greater than 10% of $780,000, which is $78,000. Among the given answer choices, the only option greater than this amount is B) $195,000. Therefore, a reportable segment for Crabapple Corp. would be any division with external revenue equal to or greater than $195,000.

The Following Information Pertains to Crabapple Corp